August 25, 2007

421-a compromise sent to gov’s desk - Democratic boss says deal will help minimize the impact of gentrification

Courier-Life
Stephen Witt gets points this week for mentioning the Atlantic Yards carve-out in his coverage of 421-A. Then, he quickly loses those points by saying that the carve-out has been completely reformed. In fact, the value of the carve-out to Forest City Ratner was only reduced from $300 million to $200 million.

Also under the compromise, the $4 billion Atlantic Yards project, which was originally excluded from the new 421-a bill, which critics of the project called a “carve-out,” was renegotiated.

After talks between the city and the Atlantic Yards developer, Forest City Ratner (FCRC), the original Atlantic Yards component was reformed to ensure that all promised affordable units are completed and integrated throughout the project.

Under the new legislation, FCRC buildings in the project must meet the new affordability requirements in order to qualify for a 25-year tax abatement.

Also FCRC agreed to ensure that their affordable units will be built simultaneously throughout the development of the project.